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| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | London open: US uncertainty pulls FTSE 100 back from three-week high UK markets opened lower on Wednesday morning, pulling back from a three-week high, as optimism over a deal in Washington to avert a default began to fade.
The FTSE 100 in London was registering small losses early on after hitting 6,549 on Tuesday, its highest level since September 24th.
Stocks on Wall Street slipped yesterday after talks over a House proposal to suspend the borrowing limit and fund the government through to early 2014 fell apart.
Senate Majority Leader Harry Reid and Republican Minority Leader Mitch McConnell resumed discussions last night with both parties saying they were confident that "an agreement is within reach".
According to Financial Sales Trader Max Cohen from Spreadex, Senate aides have said the two leaders are looking at two possible ways of speeding the legislation through the chamber, "which often can bog down for days with procedural hurdles".
Fitch was putting further pressure on lawmakers after placing its prized 'AAA' credit rating for the US on 'negative watch'. The ratings agency said that prolonged negotiations risk "undermining confidence in the role of the US dollar as the pre-eminent global reserve currency, by casting doubt over the full faith and credit of the US".
Unemployment and jobless claims figures from the UK are due out this morning along with consumer-price inflation data from the Eurozone. However with just one day before the US is set to hit its debt ceiling, developments on Capitol Hill are likely to determine the direction of markets during today's session.
FTSE 350: IMI jumps after in-line Q3
Engineering group IMI's third-quarter results were in line with expectations with revenue 3% ahead of last year, the company said, giving the stock a boost this morning. In a trading update for the three months to end of September, the company said it will deliver full-year results that meet current market forecasts.
Telecoms giant BT was higher after Goldman Sachs upgraded the stock to 'conviction buy'. Serco and Kentz Corp also advanced after both stocks were lifted by HSBC to 'overweight'.
Luxury brand Burberry declined for a second straight day after the surprise exit of long-running chief Angela Ahrendts. Current Chief Creative Officer Christopher Bailey is to be her successor.
Aviation services provider BBA Aviation was in the red today after saying that its Chairman of six years, Michael Harper, is to step down from the board next year. He will be replaced by outgoing Invensys Chairman Sir Nigel Rudd.
Online gaming group 888 rose after saying third-quarter revenue increased 2%, helped by strong progress at its Casino division. |
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| | FTSE 100 - Risers
Rio Tinto (RIO) 3,215.00p +4.25%
Petrofac Ltd. (PFC) 1,410.00p +3.68%
Aberdeen Asset Management (ADN) 410.30p +3.38%
ARM Holdings (ARM) 1,018.00p +3.19%
WPP (WPP) 1,281.00p +3.14%
Hargreaves Lansdown (HL.) 1,040.00p +3.07%
Anglo American (AAL) 1,569.00p +2.99%
Old Mutual (OML) 196.10p +2.67%
Centrica (CNA) 367.90p +2.56%
Antofagasta (ANTO) 888.50p +2.48%
FTSE 100 - Fallers
Burberry Group (BRBY) 1,464.00p -7.63%
Capita (CPI) 970.50p -3.62%
Tullow Oil (TLW) 987.00p -1.30%
Sage Group (SGE) 320.00p -1.14%
BAE Systems (BA.) 439.20p -1.04%
Imperial Tobacco Group (IMT) 2,189.00p -0.99%
Diageo (DGE) 1,935.00p -0.95%
Rolls-Royce Holdings (RR.) 1,115.00p -0.89%
RSA Insurance Group (RSA) 118.50p -0.67%
Admiral Group (ADM) 1,223.00p -0.49%
FTSE 250 - Risers
Man Group (EMG) 83.70p +6.35%
Kazakhmys (KAZ) 268.10p +5.05%
Ferrexpo (FXPO) 194.10p +4.92%
Bellway (BWY) 1,453.00p +4.83%
Rightmove (RMV) 2,524.00p +4.77%
Senior (SNR) 264.90p +4.75%
African Barrick Gold (ABG) 154.10p +4.26%
Pace (PIC) 285.60p +4.04%
Imagination Technologies Group (IMG) 283.50p +3.69%
CSR (CSR) 536.00p +3.67%
FTSE 250 - Fallers
Edinburgh Inv Trust (EDIN) 572.50p -4.98%
Homeserve (HSV) 242.60p -4.49%
Serco Group (SRP) 516.50p -3.91%
Oxford Instruments (OXIG) 1,355.00p -3.35%
Ladbrokes (LAD) 185.50p -3.18%
Drax Group (DRX) 639.00p -3.03%
Rentokil Initial (RTO) 107.90p -2.88%
Renishaw (RSW) 1,692.00p -2.76%
Dialight (DIA) 1,175.00p -2.57%
Kenmare Resources (KMR) 24.65p -2.38% |
| | UK Event Calendar | | INTERIMS
e-Therapeutics, JZ Capital Partners Ltd
INTERIM DIVIDEND PAYMENT DATE
Dairy Farm International Holdings Ltd. (Singapore), Fyffes, Hellermanntyton Group, Hongkong Land Holding Ltd. (Sing.Reg), Jardine Matheson Holdings Ltd (Singapore Reg), Jardine Strategic Holdingd Ltd. (Singapore), Mandarin Oriental International (Singapore), Neptune-Calculus Income & Growth VCT
INTERIM EX-DIVIDEND DATE
British Polythene Industries, Charles Taylor, Intu Properties, Kerry Group 'A' Shares, Mears Group, New Britain Palm Oil Ltd. (DI), Octopus Apollo VCT, Scisys, Smart Metering Systems, Spectris, Staffline Group, Ted Baker, TT Electronics
QUARTERLY EX-DIVIDEND DATE
F&C Commercial Property Trust Ltd.
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Trade (EU) (10:00)
Beige Book Fed Survey (US) (19:00)
Consumer Price Index (EU) (10:00)
Consumer Price Index (US) (13:30)
Crude Oil Inventories (US) (15:30)
Harmonised Index of Consumer Prices (EU) (10:00)
MBA Mortgage Applications (US) (12:00)
New Car Registrations (EU) (10:00)
Consumer prices (US) (13:30)
Speech President Kansas City Fed (2230)
Speech President Dallas Fed (2345)
FINALS
Imperial Innovations Group, Renewable Energy Generation Ltd., Smiths News
SPECIAL EX-DIVIDEND PAYMENT DATE
TR European Growth Trust
EGMS
BlueCrest AllBlue Fund Ltd. GBP Shares, International Oil and Gas Technology Ltd. Part Red
AGMS
AFI Development, Cambium Global Timberland Ltd.
UK ECONOMIC ANNOUNCEMENTS
Claimant Count Rate (09:30)
Unemployment Rate (09:30)
Martin Weale, Treasury Select Committee hearing (10:00)
FINAL EX-DIVIDEND DATE
Close Brothers Group, Galliford Try, Henderson EuroTrust, Schroder Japan Growth Fund, Strategic Equity Capital, TR European Growth Trust |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks mixed as US debt ceiling looms - US is one day away from debt ceiling
- UK jobless claims, unemployment rate
- Eurozone inflation figures
FTSE 100: -0.13%
DAX: -0.01%
CAC 40: -0.46%
FTSE MIB: 0.60%
IBEX 35: 0.11%
Stoxx 600: -0.17%
European stocks were mixed after the US government failed to reach an agreement on the debt ceiling overnight.
The US has just a day left to thrash out a deal before reaching its $16.7trn borrowing limiting and starting to run out of cash to pay its bills.
House of Representatives Speaker John Boehner yesterday proposed extending the government's funding through December 15th rather than January 15th as the Senate plans.
Fitch Ratings said the US was heading for a possible downgrade from its AAA credit rating, citing the stalemate in Washington.
"If lawmakers are unable to find common ground and reach a deal today, expect Fitch to take action on downgrading the rating followed by Moody's and S&P," said Ishaq Siddiqi, Market Strategist at ETX Capital.
"The silver lining for all market participants is that with the fiscal situation in the US set to remain very much in the backdrop over the next few months, the Federal Reserve will not taper asset purchases, even if we see a deal."
Siddiqi added that the partial government shutdown, which started on October 1st after a budget deal was not made in time, has "undoubtedly" hurt US economic growth.
"Consumer and business confidence deteriorates, the labour market momentum is still slow and other facets of the US economy are likely to take a minor hit on the back of this," he said.
UK jobs data, Eurozone CPI
UK jobless claims fell by 25,000 in September, compared to a drop of 32,600 the month before, according to consensus ahead of today's report.
The unemployment rate is expected to hold steady at 7.7% for August.
The Bank of England has vowed to maintain interest rates at the current low of 0.5% until the unemployment rate falls below 7%, which is not expected for another three years.
Eurozone inflation is expected to hold at 1.1% in September from the previous month.
LVMG, Danone
Louis Vuitton Moet Hennessy's shares slumped after reporting a slowdown in third quarter sales growth.
Danone declined after lowering its full-year targets as the fall-out from a recall of baby-milk products in Asia had a bigger impact than expected.
Video game developer Ubisoft retreated after reducing its full-year sales expectations due to the delay of The Crew and Watch Dogs, two of its next generation titles.
Publicis tumbled after the French ad group reported easing of third quarter sales growth because of a temporary slowdown in China, economic difficulties that hurt investment in India and underperformance in Russia. |
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| | US Market Report | | US close: Stocks drop as debt talks stall, Fitch warns on US rating - Reid rejects House proposal
- Fitch puts 'AAA' rating on 'negative watch'
- Citi misses forecasts with Q3 earnings
Dow Jones: -0.87%
Nasdaq: -0.56%
S&P 500: -0.71%
US stocks slipped on Tuesday with the S&P 500 snapping a four-day winning streak as hopes over a solution to the debt ceiling and ongoing government shutdown began to fade.
The S&P 500 was pulling back after hitting a three-week high of 1,710 on Monday, not far off its record close of 1,725.52 reached on September 18th.
The emerging House proposal to suspend the borrowing limit until February and fund the government through to January was rejected by Senate Majority Leader Harry Reid. He labelled it "a bill that can't pass the Senate, and won't pass the Senate".
Meanwhile, Bloomberg cited Senator Dianne Feinstein of California as saying that talks had "all fallen apart".
Fitch put further pressure on lawmakers on Tuesday after placing its prized 'AAA' credit rating for the US on 'negative watch'. The move came just hours after a warning by Reid that a ratings downgrade could come as soon as Tuesday.
The ratings agency said: "The prolonged negotiations over raising the debt ceiling (following the episode in August 2011) risks undermining confidence in the role of the US dollar as the preeminent global reserve currency, by casting doubt over the full faith and credit of the US."
Chinese Deputy Finance Minister Zhu Guangyao urged lawmakers to "shoulder its responsibility" as the world's largest economy and holder of the global reserve currency and "take concrete measures before October 17th to avoid a default".
While the economic data calendar continues to be on the thin side in light of the ongoing shutdown, the Empire State manufacturing index was putting downwards pressure on stocks today, falling from 6.3 to 1.5 in October, well below the consensus forecast for a rise to 7.0.
Citi falls after missing Q3 estimates
Citigroup reported third-quarter earnings that missed consensus estimates, weighing on the stock on Tuesday. The bank reported a third-quarter profit of $1 per share ($1.02 on an adjusted basis), up from just 15 cents the year before but under the $1.05 forecast. Revenues of $18.2bn (excluding an accounting charge) came up short of the $18.58bn estimate.
Other banks including Goldman Sachs, JPMorgan Chase & Co, Wells Fargo and Bank of America also finished in the red.
Apple gained following news Angela Ahrendts will step down as Chief Executive Officer of Burberry to head the tech giant's retail operations.
Microsoft rallied after Jefferies upgraded the software company to 'buy' from 'hold' and raised its target to $42 from $33.
Data solutions firm Teradata slumped after the company reported third-quarter earnings that missed forecasts.
S&P 500 - Risers
United States Steel Corp. (X) $23.52 +5.28%
Charles Schwab Corp. (SCHW) $23.03 +4.63%
Cliffs Natural Resources Inc. (CLF) $22.64 +4.09%
FedEx Corp. (FDX) $120.08 +4.08%
Allegheny Technologies Inc. (ATI) $32.03 +3.93%
Best Buy Co. Inc. (BBY) $40.62 +2.55%
Pioneer Natural Resources Co. (PXD) $199.72 +2.42%
Mead Johnson Nutrition Co. (MJN) $77.16 +2.31%
Marathon Petroleum Corporation (MPC) $68.44 +1.86%
Washington Post Co. (WPO) $639.12 +1.70%
S&P 500 - Fallers
Teradata Corp. (TDC) $42.91 -18.39%
FLIR Systems Inc. (FLIR) $28.59 -13.81%
J.C. Penney Co. Inc. (JCP) $7.17 -8.89%
Invesco Ltd. (IVZ) $32.42 -6.44%
D. R. Horton Inc. (DHI) $17.69 -3.07%
F5 Networks Inc. (FFIV) $87.55 -2.95%
Eaton Corporation plc (ETN) $66.94 -2.92%
EMC Corp. (EMC) $24.65 -2.91%
Fossil Group Inc (FOSL) $116.82 -2.85%
Lennar Corp. Class A (LEN) $33.34 -2.83%
Dow Jones I.A - Risers
Johnson & Johnson (JNJ) $89.93 +0.14%
Microsoft Corp. (MSFT) $34.49 +0.12%
Dow Jones I.A - Fallers
Home Depot Inc. (HD) $75.18 -1.53%
Procter & Gamble Co. (PG) $77.60 -1.45%
3M Co. (MMM) $119.82 -1.30%
International Business Machines Corp. (IBM) $184.66 -1.24%
Goldman Sachs Group Inc. (GS) $157.63 -1.15%
American Express Co. (AXP) $75.25 -1.08%
Boeing Co. (BA) $118.18 -1.07%
Visa Inc. (V) $191.37 -1.07%
Verizon Communications Inc. (VZ) $46.32 -1.05%
United Technologies Corp. (UTX) $105.80 -1.03%
Nasdaq 100 - Risers
Randgold Resources Ltd. Ads (GOLD) $72.06 +2.99%
Tesla Motors Inc (TSLA) $183.94 +2.35%
Alexion Pharmaceuticals Inc. (ALXN) $108.24 +1.15%
Monster Beverage Corp (MNST) $55.56 +0.78%
Google Inc. (GOOG) $882.01 +0.67%
QUALCOMM Inc. (QCOM) $68.17 +0.62%
Celgene Corp. (CELG) $155.25 +0.59%
Express Scripts Holding Co (ESRX) $63.42 +0.55%
Apple Inc. (AAPL) $498.68 +0.53%
Priceline.Com Inc. (PCLN) $1,021.51 +0.38%
Nasdaq 100 - Fallers
Green Mountain Coffee Roasters Inc. (GMCR) $65.82 -4.54%
F5 Networks Inc. (FFIV) $87.55 -2.95%
Fossil Group Inc (FOSL) $116.82 -2.85%
Nuance Communications Inc. (NUAN) $17.69 -2.80%
Check Point Software Technologies Ltd. (CHKP) $57.79 -2.79%
Intuitive Surgical Inc. (ISRG) $390.62 -2.75%
Cognizant Technology Solutions Corp. (CTSH) $85.91 -2.62%
NetApp Inc. (NTAP) $40.70 -2.47%
Citrix Systems Inc. (CTXS) $57.14 -2.39%
Xilinx Inc. (XLNX) $46.37 -2.28% |
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| | Newspaper Round Up | | Wednesday newspaper round-up: Neil Woodford, MPC, US rating One of the most successful stock-pickers of the past 25 years took the City by surprise yesterday and unnerved his thousands of retail fans by announcing that he is to leave his employer and set up his own business. Neil Woodford, of Invesco Perpetual, who has produced a 23-fold return for his earliest backers, has dominated retail fund management for years, with private investors piling into his funds, writes The Times.
Concern at the Bank of England about the impact of the government's Help to Buy mortgage scheme came to light on Tuesday as official figures showed the British property market has exceeded its 2008 peak. Martin Weale, one of nine members of the Bank's rate-setting Monetary Policy Committtee (MPC), warned that the scheme to underwrite home loans could push up prices, The Times explains.
Fitch Ratings placed the triple A credit rating of the US on negative watch, as efforts to end the budget impasse faltered during a day of drama on Capitol Hill capped by the reopening of talks in the Senate late on Tuesday. Spokesmen for Harry Reid, the Democratic majority leader in the Senate, and Mitch McConnell, the Republican minority leader, said after talks in the House had broken down that they had resumed negotiations and were "optimistic" about success, the Financial Times says.
The world's PC makers are not betting on much of a rebound in their flagging market in the final months of this year, despite earlier hopes that a new wave of cheaper, more versatile machines would reignite interest among buyers. That is according to Intel, the US chipmaker, which on Tuesday issued a downbeat fourth-quarter financial forecast of its own and trimmed its capital spending plans amid the continuing slump in PC demand, The Financial Times reports.
The importance of Alibaba to the turnaround underway at Yahoo! was underlined last night as the American internet group revealed that it would keep a larger stake than initially agreed after the Chinese e-commerce site goes public next year. In a move that will allow it to piggyback the Chinese juggernaut's future growth at the same time as receiving a huge cash injection, Yahoo! said that it would sell up to 208m of the 523.6 m shares it owns in Alibaba, either directly back to the company or through the initial public offering, less than a previously agreed maximum of 261.5 m. Yahoo! holds a 23.5% stake in Alibaba, according to The Times.
Analysts describe rebound of world's second largest economy, China, as "unhealthy" and likely to wither over coming months as Beijing is forced to tighten policy. Borrowing by all levels of the Chinese government has soared to unprecedented levels and is now one of the highest in the world, vastly complicating efforts by Beijing's new leadership to keep growth on track. Data from the International Monetary Fund shows that China's budget deficit reached 9.7% of gross domestic product last year if regional spending is included and one-off land sales are stripped out. This is higher than previously thought and above levels in the US, India, or Southern Europe's debt-stricken crisis states, The Daily Telegraph explains. | | |
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